Union wins first round on benefits

The state Division of Labor Relations has issued a complaint against the city, contending it violated labor laws in 2008 when it made changes to employee health insurance benefits.

In investigating an unfair labor complaint filed by Local 495, National Association of Government Employees, Kathleen Goodberlet of the Division of Labor Relations concluded that the city “failed to bargain in good faith” by changing health insurance premium rates and co-payments for bargaining unit members without “giving the union an opportunity to bargain to resolution or impasse.”

She said health insurance benefits are a mandatory subject of collective bargaining.

Sean Maher, president of NAGE Local 495, which represents some 500 municipal workers, said his union is relieved that the state has issued a complaint based on its charges.

“The city can’t violate the law and pretend that nothing is wrong,” Mr. Maher said in a prepared statement. “We just want everyone to play by the same fair rules and to be held accountable.”

But City Manager Michael V. O’Brien contends the city negotiated in good faith with Local 495, having held several bargaining sessions in an attempt to reach an agreement and save municipal jobs and services. He disputed the contention that the city made the changes without giving the union an opportunity to bargain them.

According to the complaint, several bargaining sessions were indeed held in 2008 — March 21, April 14 and 15, May 15, June 18 and July 24. On Sept. 12, 2008, the city then declared that the parties had reached an impasse and announced it would implement changes to health insurance benefits, including higher medical co-payments.

Mr. O’Brien said the changes were meant to stabilize municipal services and jobs in the midst of a global economic meltdown. He said all employee unions understand the fiscal predicament the city is facing, with most having agreed to accept no wage increases and take on a greater share of their health care costs.

“Local 495’s contract has a reopener specifically on employee health care costs,” Mr. O’Brien said. “The economic crisis was more than reason to reopen negotiations, especially when other unions had already agreed to zero percent wage increases and paying more for their health care, all to save jobs.

“When (Local 495) E-board formally ended all negotiations, not the city,” he added. “When faced with the prospect of deeper layoffs of Local 495 members and steep service cuts, or preserve their jobs and those services, I had to make the decision to declare an impasse and implement the changes after we exhausted all means to negotiate in good faith. We did not walk away from the table.”

He said he was able to apply the savings generated by the health insurance changes to restore eight Local 495 jobs that had been cut in the budget.

But Mr. Maher contends that Mr. O’Brien “illegally” declared an impasse in the negotiations.

“City employees are taxpayers, too; we care about rising costs, but the law has to apply to everyone, including the city manager,” Mr. Maher said. “He can’t pick and chose which rules he’ll obey. We hope that the state will uphold the charges.”

The next stage in the process will be a full hearing before the Division of Labor Relations.